ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Per Capita Income is a metric used to determine the amount of money earned per individual in a nation or geographical area. You’ll get PCI of a specific geographical location by dividing a population’s total income by that area’s population.

Detailed explanation-2: -National income is the total value a country’s final output of all new goods and services produced in one year whereas national income is calculated by taking sum of all sectors personal, public or government. per capita income = total income ÷ total population.

Detailed explanation-3: -A country’s GDP or gross domestic product is calculated by taking into account the monetary worth of a nation’s goods and services over a certain period of time, usually one year. It’s a measure of economic activity. This amount of wealth is divided among the country’s population to tell us its GDP per capita.

Detailed explanation-4: -Per capita income represents the average income of an individual in a country. It reflects the people’s standard of living and can be used to compare the economic conditions of various countries.

Detailed explanation-5: -Per capita is a Latin term that translates to “by head.” Per capita means the average per person and is often used in place of “per person” in statistical observances. The phrase can be used for almost any kind of population description but is common when discussing economic data.